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Denied Boarding b/c of Computer Problem -- Compensation

Denied Boarding b/c of Computer Problem -- Compensation

Old May 9, 22, 11:31 am
  #46  
 
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Originally Posted by Antarius View Post
Interesting. Why?

I understand that things like weather, ATC etc. are outside of an airline's control, but maintenance most certainly is.
I think it is a perverse incentive to send a questionable plane into service that might compromise safety.
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Old May 9, 22, 11:39 am
  #47  
 
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Originally Posted by LINDEGR View Post
I think it is a perverse incentive to send a questionable plane into service that might compromise safety.
I don't see this affecting that at all. The cost of EC261 isn't that high.

Either the company has a good safety culture or it doesn't. If they're willing to cut corners, it's across the entire company and that happens regardless.

Also, statistically we should see more crashes happening on EU airlines and other airlines ex-EU. Which we do not see.
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Old May 9, 22, 1:50 pm
  #48  
 
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Originally Posted by js1993 View Post
Right, I "discovered" something I pointed out at the start.
Nope. The fact you think those two statements are equivalent demonstrates, once again, a fundamental misunderstanding of very basic microeconomic theory. Like the first two weeks of Econ 101 level of basic. If airlines could just increase their prices whenever they had increases in costs, you'd see airlines consistently able to pass on the costs of increased fuel costs to customers, when in reality high fuel costs tend to shrink profit margins and generally take several quarters to show up at all since passenger demand is much more elastic than supply over the short term.

Why would I want to pay an extra $6/flight for insurance that I get from multiple credit cards? If people want insurance, they can buy insurance.
Well:

1) Your math on EU->USD isn't very good (hint: current EUR:USD exchange rate is 1.06, not 1.5); I also think it's also per ticket, not per flight.
2) Please tell me which of your credit cards provides denied boarding compensation. I've never heard of such a thing.
3) Outsourcing this to third party insurance also removes incentive on behalf of the airline to avoid the problem in the future, which is what most of us really want.
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Old May 9, 22, 2:03 pm
  #49  
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Originally Posted by jordyn View Post
Nope. The fact you think those two statements are equivalent demonstrates, once again, a fundamental misunderstanding of very basic microeconomic theory. Like the first two weeks of Econ 101 level of basic. If airlines could just increase their prices whenever they had increases in costs, you'd see airlines consistently able to pass on the costs of increased fuel costs to customers, when in reality high fuel costs tend to shrink profit margins and generally take several quarters to show up at all since passenger demand is much more elastic than supply over the short term.
lol

When was the last time economists were right about anything?

EU comp isn't some short-term price fluctuation. It's a known liability and it's factored into the baseline price of the product, like any smart business does with fixed costs.

2) Please tell me which of your credit cards provides denied boarding compensation. I've never heard of such a thing.
3) Outsourcing this to third party insurance also removes incentive on behalf of the airline to avoid the problem in the future, which is what most of us really want.
How often does this even happen? Why would anyone want standalone IDB** insurance? Your solution is in search of a problem. We don't need more government mandates and government-imposed fees in response to 1 in ~100,000 events that are easily resolved between business and customer.


(**using "IDB" very loosely)
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Old May 9, 22, 2:07 pm
  #50  
 
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Originally Posted by js1993 View Post
When was the last time economists were right about anything?
Well, they do know the Euro-USD exchange rates.
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Old May 9, 22, 2:18 pm
  #51  
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Originally Posted by steveholt View Post
Well, they do know the Euro-USD exchange rates.
That's great. I'd know them, too, if Covid hadn't kept me away from Europe for the longest "two weeks" in history.
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Old May 9, 22, 3:20 pm
  #52  
 
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Originally Posted by jordyn View Post
Nope. The fact you think those two statements are equivalent demonstrates, once again, a fundamental misunderstanding of very basic microeconomic theory. Like the first two weeks of Econ 101 level of basic. If airlines could just increase their prices whenever they had increases in costs, you'd see airlines consistently able to pass on the costs of increased fuel costs to customers, when in reality high fuel costs tend to shrink profit margins and generally take several quarters to show up at all since passenger demand is much more elastic than supply over the short term.
Yep. This is probably day 2 of Econ 101, right after they define supply and demand as terms. And given that the European aviation market hasn't collapsed any more than anyone else, clearly this cost isn't so burdensome.

Largely speaking, I don't see any good arguments against EC261 style legislation. Companies in the US have successfully conditioned people to think that any regulation is bad, even if it helps them out. And that's why we have embarrassingly bad consumer protections and apparently a horrifying lack of basic economics knowledge.
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Old May 9, 22, 4:27 pm
  #53  
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Originally Posted by Antarius View Post
Yep. This is probably day 2 of Econ 101, right after they define supply and demand as terms. And given that the European aviation market hasn't collapsed any more than anyone else, clearly this cost isn't so burdensome.

Largely speaking, I don't see any good arguments against EC261 style legislation. Companies in the US have successfully conditioned people to think that any regulation is bad, even if it helps them out. And that's why we have embarrassingly bad consumer protections and apparently a horrifying lack of basic economics knowledge.
lol

The "smart people" know that companies don't really need to worry about recouping 100% of fixed costs. It all just works out magically somehow.
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Old May 10, 22, 11:38 am
  #54  
 
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Originally Posted by jordyn View Post
Nope. The fact you think those two statements are equivalent demonstrates, once again, a fundamental misunderstanding of very basic microeconomic theory. Like the first two weeks of Econ 101 level of basic. If airlines could just increase their prices whenever they had increases in costs, you'd see airlines consistently able to pass on the costs of increased fuel costs to customers, when in reality high fuel costs tend to shrink profit margins and generally take several quarters to show up at all since passenger demand is much more elastic than supply over the short term.
How many weeks until they cover the difference between a fixed cost and one that fluctuates wildly?
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